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How ICT shapes wages, working conditions, and job satisfaction

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  • Sarah Flèche

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CEP - LSE - Centre for Economic Performance - LSE - London School of Economics and Political Science)

  • Eva Moreno‐galbis

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Ariell Reshef

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Claudia Senik

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris)

Abstract

We study how the widespread diffusion of ICT affects wages, working conditions, and job satisfaction. We frame our empirical investigation with a model in which ICT can improve both wages and working conditions by increasing firms' output. Using French matched employer-employee data and an instrumental variable approach that is motivated by the model, we find that ICT diffusion in 2013-2019 has been beneficial to workers, who experienced both higher wages and better working conditions, particularly through greater flexibility, physical comfort, and safety. In contrast, ICT use has also increased psychological stress and work intensity. These effects vary across workers, firms, occupations and sectors, depending on their characteristics. Despite overall improvements in wages and working conditions, we estimate only modest positive effects of ICT use on job satisfaction. We discuss potential explanations for this finding.

Suggested Citation

  • Sarah Flèche & Eva Moreno‐galbis & Ariell Reshef & Claudia Senik, 2026. "How ICT shapes wages, working conditions, and job satisfaction," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-05538315, HAL.
    • Handle: RePEc:hal:cesptp:hal-05538315
    Note: View the original document on HAL open archive server: https://hal.science/hal-05538315v1
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